What happens to past due Home Owners Association dues after bankruptcy? 22 Answers as of April 19, 2011

I was wondering what happens with past due Home Owners Association fees if someone files bankruptcy or has to short sale their home?

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Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
There is a special provision in the Bankruptcy Code about HOAs. The post-filing, pre-foreclosure dues are owed in spite of bankruptcy. That would pertain to a short sale as well.
Answer Applies to: California
Replied: 4/19/2011
Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
HOA fees remain a lien against real property.
Answer Applies to: Indiana
Replied: 4/18/2011
Rhonda R. Werner Schultz, PL
Rhonda R. Werner Schultz, PL | Rhonda R. Werner Schultz
In Florida where I practice, the Homeowners Association dues that have accrued up to the date of filing the petition for bankruptcy are discharged like your other debts. Those dues that continue to accrue after date of filing will continue to be your personal responsibility until you sell your house and transfer the deed or the bank forecloses and sells the house at the foreclosure sale.
Answer Applies to: Wisconsin
Replied: 4/18/2011
Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
A new Attorney can ask for fees to be paid out of the Chapter 13 Plan. Do not let worry over money prevent you from getting the legal assistance that you need!
Answer Applies to: New Hampshire
Replied: 4/17/2011
Ferguson & Ferguson
Ferguson & Ferguson | Randy W. Ferguson
It depends if you put them in the bankruptcy. The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice.
Answer Applies to: Alabama
Replied: 4/17/2011
    Law Office of Asaph Abrams
    Law Office of Asaph Abrams | Asaph Abrams
    HOA dues incurred prior to filing bankruptcy are dischargeable.
    Answer Applies to: California
    Replied: 4/15/2011
    Mercado & Hartung, PLLC
    Mercado & Hartung, PLLC | Christopher J. Mercado
    Past due HOA dues are dischargeable in BK.
    Answer Applies to: Washington
    Replied: 4/15/2011
    Law Office of Aaron Nielson
    Law Office of Aaron Nielson | Aaron Nielson
    Depending on your situation the past due HOA bills could be discharged. HOA rules are complicated and you need to talk to an attorney.
    Answer Applies to: Washington
    Replied: 1/14/2011
    Mankus & Marchan, LTD
    Mankus & Marchan, LTD | Tony Mankus
    In many cases the home owners association can file a lien against the property for unpaid dues, which is a claim in the short sale of the home. However, that obligation should normally be dischargeable to the Debtor.
    Answer Applies to: Illinois
    Replied: 1/12/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    You owe the home owners association every month your name is still on the house. A short sale gets your name off the house, but bankruptcy doesn't. After you file your bankruptcy case, you need to pay monthly the association until the bank takes over, or there's an after-bankruptcy short sale or a foreclosure sale or deed in lieu or something that makes someone else the owner.

    Bankruptcy gets you out of your debts, but it doesn't get you out of all your problems.
    Answer Applies to: Virginia
    Replied: 1/11/2011
    The Law Offices of Robert L. Driessen
    The Law Offices of Robert L. Driessen | Robert L. Driessen
    Did you put them in your bankruptcy petition? Where they discharged? You should consult with your prior attorney.
    Answer Applies to: California
    Replied: 1/10/2011
    Greifendorff Law Offices, PC
    Greifendorff Law Offices, PC | Christine Wilton
    You need to pay them. They survive bankruptcy
    Answer Applies to: California
    Replied: 1/10/2011
    The Law Office of Brian Nomi
    The Law Office of Brian Nomi | Brian H. Nomi
    That is a tricky one. There is a special statute that provides that HOA dues incurred AFTER you file for bankruptcy are still due and payable. This is designed to prevent hardship to HOA's where people are losing their house to foreclosure and not paying either the mortgage or HOA. The mortgage is completely wiped out, but HOA dues after you filed are your responsibility.
    Answer Applies to: California
    Replied: 1/10/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    That depends on what the homeowners contract says and whether they have a lien against the property. The debt would be discharged, but if they have a lien, it would remain post discharge. Also, any HOA dues which came due after the filing of the case would likely not be discharged, but again that depends on how the contract and CC&Rs are written.
    Answer Applies to: California
    Replied: 1/10/2011
    Goodman, Dicus, and Teinert, LLP
    Goodman, Dicus, and Teinert, LLP | Scott W. Dicus
    In a Chapter 7 bankruptcy, you cannot discharge fees assessed after your bankruptcy filing date by a membership association for a condominium, housing cooperative, or lot in a homeowner association if you or the trustee have an ownership interest in the condominium, cooperative, or lot.

    As a practical matter, this means that any fees that become due after you file for Chapter 7 bankruptcy will survive the bankruptcy, but fees you owed prior to filing will be discharged.
    Answer Applies to: California
    Replied: 1/10/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Prepettion HOA fees are discharged. You owe the post petition HOA fees. If there is a short sale the HOA fees go with the property.
    Answer Applies to: California
    Replied: 1/10/2011
    Judith A. Runyon, Esq. Attorney at Law
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    You continue to be liable for Home owners association dues that continue after the date your bankruptcy was filed and up until any sale of the property. HOA dues are a new monthly debt, so that is why only those incurred at the time of the bankruptcy are discharged. If the HOA has already sued you and received a Judgment, there may be other issues.
    Answer Applies to: California
    Replied: 1/10/2011
    Law Offices of Lady Justice
    Law Offices of Lady Justice | Mona Patel
    Homeowners association fees usually survive a bankruptcy. There are usually non-discharge debts and you will most likely have to pay them back.
    Answer Applies to: California
    Replied: 1/10/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    You are technically liable for all HOA dues (even after filing for BK) until the house is under legal possession and ownership of another party. In short, pay your HOA dues until the house is sold to another. This does not mean that all HOAs will seek to collect, but they can up until the house legally belongs to someone else.
    Answer Applies to: California
    Replied: 1/10/2011
    The Shakoori Law Group
    The Shakoori Law Group | Rachelle Shakoori
    Usually, if they get discharged if they are from the pre filing date but you remain liable for the amounts post filing date.

    I highly recommend that you retain an experienced bankruptcy attorney in your jurisdiction to guide you through the complexities of bankruptcy law and procedure.
    Answer Applies to: California
    Replied: 1/10/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    The H.O. dues are a secured debt so the debt remains a lien on the property. The lien of the H.O. Association is superior to the bank's liens for mortgages. However, your personal liability for the dues is discharged in a Chapter 7 for the dues but only for the period before you filed. If you remain in possession of the property then you will owe the dues that become payable after you file. Chapter 7 will eliminate your liability for debts before you file only. Since the lien remains attached to the property for the H.O. dues [you can say that the property itself continues to owe the H.O. dues because it is a charge or lien against the property], the buyer of the property takes the property subject to the debt to the H.O. Association. That is why before there is a foreclosure (trustee's sales) or at the time a short sale closes the H.O. Association is usually paid. Most buyers want clear title and the H.O. Association dues need to be paid before the transfer of the property for the buyer to obtain clear title. Otherwise, the buyer will have to pay the old H.O. dues to obtain title free and clear of the lien from the H.O. Association. In a Chapter 13 the situation is more complex and the association dues unpaid have to be paid in the Chapter 13 Plan unless you surrender the property. You need to contact a bankruptcy attorney since bankruptcy law is highly complex and require competent legal representation to avoid serious difficulties, particularly when dealing with real property issues.
    Answer Applies to: California
    Replied: 1/10/2011
    Gus Johnson Attorney at Law
    Gus Johnson Attorney at Law | Gus Johnson
    Homeowner dues normally arise from covenants and thus run with the real estate. A debtor can discharge personal liability but the lien remains on the property.
    Answer Applies to: South Dakota
    Replied: 1/10/2011
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